Published 27 MarchClinuvel Pharmaceuticals Limited (ASX: CUV)The...

Published 27 March
Clinuvel Pharmaceuticals Limited (ASX: CUV)

The first ASX healthcare stock that could be a buy according to the broker is Clinuvel Pharmaceuticals. It is a specialty pharmaceutical company focused on developing and commercialising treatments for patients with genetic, metabolic, systemic, and life-threatening, acute disorders.

Its key product is Scencesse, which is the only approved drug in the US and EU for patients with erythropoeitic protoporphyria (EPP).

Bell Potter believes the company is well-placed to deliver a strong result in FY 2025. Based on this and promising trial results, it feels that the company's shares are great value. It said:

The company's lean, vertically integrated business model has it on track to generate $97m rev in FY25 and EBITDA of $52m (VA cons $49m). We expect a strong full-year FY25 result as margins typically expand in 2H as more sales are booked in the lead up to the northern hemisphere summer. At an EV of ~$390m and ~7.4x EV/EBITDA, we view the existing EPP franchise alone comfortably supporting the share price, with potential step-change in market opportunity from vitiligo which is nearing a critical Ph3 de-risking event in ~1H CY26.

Bell Potter has a buy rating and $21.75 price target on its shares.